11:13 AM EDT, 10/29/2025 (MT Newswires) -- Corning's (GLW) Q3 results came in slightly below expectations, indicating that the pace of earnings growth may stagnate in the near term, even though the long-term growth outlook remains solid, Morgan Stanley said in a note Tuesday.

The analysts said the strongest part of the quarter came from Corning's solar business, which grew 38% quarter-over-quarter and 64% year-over-year. Management also noted that the company's tax rate could decline slightly due to benefits from the One Big Beautiful Bill Act.

The analysts added that they remain cautious about how quickly new optical capacity will come online, as fiber sales were largely in line with expectations. "We could become more positive were we to see scale up opportunity come sooner than expected or Solar business to ramp more profitably than expected."

The analysts said demand for optical products remains strong, driven by hyperscaler projects and telecom carriers expanding their fiber networks. Strength in display, specialty materials, and solar should continue into Q4. However, they remain aware of capacity constraints that could limit upside potential.

They now forecast Q4 non-GAAP revenue and EPS of $4.36 billion and $0.70, respectively, and full-year 2025 figures of $16.35 billion and $2.52, up from their prior estimates of $4.15 billion and $0.64 for Q4 and $16.05 billion and $2.45 for the full year.

Morgan Stanley maintains its equal-weight rating on Corning with a price target of $82, up from $75.

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